EMC sets date for shareholder meeting to take company private
EMC Insurance Group Inc., which has been a publicly traded company since 1982, announced Thursday it will hold a special shareholders’ meeting on Sept. 18 at its Des Moines headquarters at which its minority shareholders will vote on whether to take the company private. The vote follows a definitive merger agreement previously approved by the company’s board on May 9. If the transaction is approved by the remaining public shareholders, Employers Mutual Casualty Co. (EMCC), which currently owns approximately 54% of the outstanding shares of EMC Insurance Group (EMCI), will acquire all of the remaining shares of EMCI for $36 per share in cash. The transaction has an equity value of approximately $356 million based solely upon the outstanding shares of EMCI not owned by EMCC. EMC Insurance Group’s board, based on a unanimous recommendation of a special committee, is recommending that EMCI minority shareholders vote to approve the transaction. Approval of the transaction requires the affirmative vote of the holders of at least a majority of the outstanding common stock owned by the minority shareholders (shareholders not affiliated with EMCC or EMCI).